How To Leverage Blog Income To Build A Web Property Portfolio
With a title like that you would think this article is going to be all about taking the money you make from blogging and sticking it in shares or property or some other form of investment, and you would be right, but the investment method I’m going to explain to you today is not exactly typical. In fact I bet not a single blogger reading this article will have done what I do with some of my blog profits (feel free to leave a comment and prove me wrong though).
What am I talking about?
I’m talking about reinvesting the money you make blogging into web property, in particular buying websites that generate passive income.
I’ve long been a fan of flipping websites, in fact if you type that phrase into Google this blog turns up as the number one ranking article for the previous article I wrote, How To Buy A Website And Flip It For Profit. At the moment though, I’m not much of a flipper, more a buy, renovate and hold type of investor.
Bloggers Are Broke
Let’s face it, most bloggers when they start out are broke. Chances are you don’t have a few thousands dollars lying around for investing in anything and as a result a low-cost start-up, like a blog, is a common pathway for a budding web entrepreneur to follow.
Blogs might not turn a profit quickly, but provided you put in the elbow grease and follow some principles (Blog Profits Blueprint anyone?) you will start making some money eventually. That’s exactly what I did with my blog, although I had the advantage of a nice salary sized cash-flow coming in from my existing web business when I started blogging.
There is an inherent risk when buying websites. I would say that buying a site and optimizing it so it makes more money is an “easy” way to build passive income (I’ll explain how it is passive in a moment) and it’s a much less labor intensive way to make money online than blogging is, but for most people it’s out of the question. You either don’t have the money or don’t know how to do it or you have too much fear holding you back. Starting a blog is a much less scary proposition for most people.
However, once you build a great blog and your income source is stable, why not start to experiment and build income sources that are not as labor-intensive as blogging? A blog cash-cow can be the perfect fuel for building a nice portfolio of web property which quietly makes you money in the background while you spend your days writing a blog and enjoying the fruits of your labor.
